VA Loans - Benefits
VA Loans (Veteran Administration Loans) are ideal for many first-time home buyers who have little no money saved for a down payment, and less than an ideal FICO score, assuming they meet other qualifications.
- Require no down payment. You can finance 100% of the purchase price of the home.
- Require no mortgage insurance which saves the homeowner money every month.
- Have no prepayment penalty when you sell your home or refinance it.
- Can be a fixed rate or adjustable-rate loan depending on the borrower’s desire.
- Require minimal closing costs.
- Are fully assumable by anyone who is VA qualified.
- Generally, have lower interest rates than FHA or conventional loans.
VA loans are available to:
- Active-duty service members
- Members of the National Guard
- Surviving spouses of veterans
- Cadets at the U.S. Military, Air Force or Coast Guard Academy
- Midshipmen at the U.S. Naval Academy
- Officers at the National Oceanic Atmospheric Administration.
VA home loans are available to active-duty service members, veterans (unless dishonorably discharged), and in some cases, surviving family members.
To be eligible, you need to meet one of these service requirements:
- You’ve served 181 days of active duty during peacetime
- You’ve served 90 days of active duty during wartime
- You’ve served six years in the Reserves or National Guard
- Your spouse was killed in the line of duty and you have not remarried
Your eligibility for the VA home loan program never expires.